IN GEOMETRIC TERMS

These two slopes are the same, since the two lines arethere tangent.

The slopes of the M line and the O x line at Pi areidentical since the two lines are tangent at that point.The degree of impatience is represented by the identical

CHART 38

Point of Equilibrium Where the M Line Which is Tangent to the OLine at P is also Tangent to a Willingness Line at Q.

slopes of the M line and of the W x line at their point oftangency Q x . Since the M line is a straight line, the slopesof the Oi line and the M line at P x and the slopes of theM line and the W x line at Q x are all identical and theidentity of the opportunity rate, the impatience rate,and the market rate is shown.

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